Southern Star Central Gas Pipeline, Inc.

Original Volume No. 1

Effective Date: 07/10/2009, Docket: RP09-758-000, Status: Effective

Second Revised Sheet No. 260 Second Revised Sheet No. 260

Superseding: First Revised Sheet No. 260

GENERAL TERMS AND CONDITIONS

11. FIRM CAPACITY REASSIGNMENT (Cont'd)

A bidder may withdraw its bid for capacity at any time prior

to the close of the bidding period specified in Section

11.4(b), but may only submit a new bid for that released

capacity having a higher economic value. If a person

submits multiple bids, and withdraws one, all bids for the

same released capacity or any portion thereof are considered

withdrawn. Bids for released capacity shall be binding

until written or electronic notice of withdrawal is received

by Southern Star. Bids cannot be withdrawn after the bid

period ends.

If the Releasing Shipper has specified a procedure for

determining the best bid, Southern Star will utilize the

Releasing Shipper's desired procedure; otherwise, Southern

Star will consider only the demand component (restated to

the demand basis if the bid is volumetric) and the term of

bids, in valuing the bids. A volumetric rate may not exceed

the 100% load factor equivalent of the maximum reservation

charge for the applicable firm service. Provided, however,

that beginning July 30, 2008, the maximum rate ceiling

specified in the preceding sentence shall not apply to

capacity release transactions of one year or less. Such

maximum volumetric rates are stated on the applicable Tariff

Sheet 10, 10A, 11. The value of offers will be calculated on

a net present value basis per Dth of firm capacity.

Southern Star will use a discount rate equal to the interest

rate applicable to pipeline refunds pursuant to Section

154.501 of the Commission's regulations or successor

regulation to evaluate all bids. If multiple bids meeting

minimum conditions have been submitted, bids will be

awarded, best bid first, until all offered capacity is

awarded.